2016 (11) TMI 1180 - MADHYA PRADESH HIGH COURT

2016 (11) TMI 1180 - MADHYA PRADESH HIGH COURT - TMI - Imposition of VAT - ‘inter-state sale’ treated as ‘intra-state sale’ - Held that: - if the goods moved in the course of ‘inter-state’ movement and reaches the buyer in satisfaction of a contract of a purchase and there is a nexus between the movement of goods and the contract entered into, for which the movement of the goods takes place, then such a sale is deemed to be in the course of inter-state trade or commerce, and based on the contrac .....

e’ or ‘intra-state sale’. This having not been done, we are of the considered view that this petition should be allowed and matter remanded back to the Assessing Officer for reconsideration.
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Appeal allowed by way of remand. - Writ Petition No. 5999 of 2016 - Dated:- 11-8-2016 - Rajendra Menon (ACJ) And Anurag Shrivastava, JJ. For the Petitioner : G. N. Purohit, Senior Advocate With Abhishek Oswal and Uma Parashar For the State/Respondent : Samdarshi Tiwari, Deputy Advocate General ORDER Ch .....

hase, Traction Over-head Equipment, Switching Stations, Traction Sub-Stations, SCADA, General Electrical Services Works etc, as detailed in the Agreement by the Nagpur Division of Central Railway and certain authorities of the South Eastern Railway. Under the aforesaid contract agreement, the petitioner was required to purchases for the Client - namely RDSO/CORE i.e… Railway s approved suppliers from outside the State. The goods so purchased are to be inspected by the Inspecting Agency, a .....

work site of the contract, as specified by the authorities from time to time. The petitioner claimed all these transactions to be inter-state sale as the movement of the goods took place on the basis of the pre-existing contract for delivery to the end user, accordingly, the petitioner claimed that the movement of goods and the transaction were covered under section 3(a) of the Central Sales Tax Act, and as the said sales tax was paid by the petitioner on the aforesaid purchase, no Value Added T .....

d, (2016) 29 STJ (SC), and various other principle of law have been ignored. Learned Senior Advocate invites our attention to the compilation submitted by the petitioner before the Assessing Officer, running into more than 300 pages, alongwith various documents in support of his contention; and, the casual and cursory manner in which the Assessing Officer has passed the order-dated 12.1.2016, in one page. 5. Learned Senior Advocate argued that without adverting to consider various aspects of the .....

h regard to the nature of sale being inter-state sale or intra-state sale is a question of fact which warrants inquiry, therefore, this Court should not go into the matter. 7. Learned Deputy Advocate General refers to paragraph 14 of the judgment rendered by the Supreme Court, in the case of ABB (supra), to canvas a contention that the question of the transaction being a benami transaction is also required to be considered in the matter. 8. Shri G.N. Purohit, learned Senior Advocate, refuted the .....

ement and reaches the buyer in satisfaction of a contract of a purchase and there is a nexus between the movement of goods and the contract entered into, for which the movement of the goods takes place, then such a sale is deemed to be in the course of inter-state trade or commerce, and based on the contract of sale as is provided in the contract. 10. Prima facie on consideration of facts that have come on record, the contention of Shri G.N. Purohit seems to be correct. However, we find that eve .....